Is construction financing available for a limited period of time?

Posted on by Michelle Myers


Is construction financing available for a limited period of time? Construction financing with a fixed-term employment contract is also possible in principle. However, banks then expect a high equity ratio. In addition, the value of the property must be high enough to qualify as sufficiently high collateral for the bank.

Is construction financing possible with a temporary residence permit? A construction financing with a temporary residence permit, Blue Card EU or Blue Card EU is available at Hillermann-Finanz at current top construction financing conditions. A construction financing is possible up to 100% of the market value of the property (purchase price used property or new construction production costs).

Who needs temporary construction financing?

Anyone applying for construction financing with a temporary employment contract needs powerful arguments - or a well-earning spouse in the employment relationship.

How is construction financing possible? Construction financing is possible up to 100% of the market value of the property (purchase price used property or new construction production costs). When buying your property, you should have at least the purchase price ancillary costs for real estate agent, land transfer tax, notary in the form of equity.

What should be allowed with the residence permit?

The Aufenthaltsgestattung is intended to allow an asylum seeker to stay only for the purpose of carrying out the asylum procedure. Duldung: According to the definition of the right of residence, the Duldung is a "temporary suspension of deportation" of foreigners who are obliged to leave the country.

How long does the residence permit in a reception facility last? During the period of the obligation to live in a reception facility, the validity of the residence permit is limited to three months, otherwise to six months (Section 63 (2) Asylum Act).

Which residence titles are distinguished? With regard to residence titles, a distinction can be made between the following residence titles: Settlement permit: The settlement permit is an unlimited residence title which in principle entitles the holder to pursue gainful employment.

How long is the residence permit limited in time? During the period of the obligation to live in a reception center, the validity of the residence permit is limited to three months, otherwise to six months ( Section 63 (2) Asylum Act). The validity is entered in the adhesive label, which is stuck into the residence permit.

What increases the chance of getting a home loan despite a fixed-term employment contract?

A high income increases the chance of obtaining a home loan despite a fixed-term employment contract. Income is a key decision-making criterion when it comes to home loans. Are you employed on a fixed-term contract?

Which persons have a permanent right of residence?

An unlimited right of residence has, for example: Persons with a settlement permit or a permit for permanent residence-EC citizens of the Union entitled to freedom of movement or equivalent nationals from Iceland, Liechtenstein, Norway or Switzerland as well as their family members and life partners.

What is a permanent right of residence for foreigners?

Certificate of an unlimited right of residence. The various residence titles for foreigners expire by operation of law, among other things, if, upon leaving the territory of the Federal Republic of Germany, re-entry does not take place within a period which, according to the Residence Act for the respective type of residence title

What are the requirements for a permanent residence title?

Prerequisites. Possession of an unlimited residence title This includes the settlement permit, the permit for permanent residence EC as well as an unlimited residence permit or residence authorization issued before 01.01.2005.

Is the search for construction financing difficult?

With a temporary employment contract, the search for construction financing becomes difficult. However, if the borrower has savings and equity to offer, the bank is more likely to be convinced. Another borrower with a permanent employment contract also helps in this situation.

Is poor creditworthiness crucial, especially in the course of construction financing? This is because many banks have long since recognized that poor creditworthiness does not always have to be decisive, especially in the course of construction financing.

How high are the interest rates for a favorable construction financing? For favorable construction financing, the right concept is at least as important as low interest rates. In June 2019, the construction interest rates for a standard financing are around 1.2 percent (fixed interest period 10 years, loan-to-value ratio: approx. 80 percent).

How can they save with a low-cost construction financing? With a favorable construction financing you can save thousands of euros. This is due to the high sums and the long term of the construction loan. For a favorable construction financing, the right concept is at least as important as low interest rates.

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